HB 24-1230

House Bill 24-1230, titled "Protections for Real Property Owners," enhances legal protections for homeowners by extending the time limit for filing construction defect lawsuits from 6 years to 10 years and requiring courts to award interest on claims of defects. The bill also prevents developers from including clauses in contracts that restrict group lawsuits against construction professionals or limit consumer rights under existing laws. Signed into law, this means that homeowners now have more time and legal support when dealing with issues related to defective construction.

Official Summary

Current law declares void any express waivers of or limitations on the legal rights or remedies provided by the "Construction Defect Action Reform Act" or the "Colorado Consumer Protection Act". Sections 1 and 4 make it a violation of the "Colorado Consumer Protection Act" to obtain or attempt to obtain a waiver or limitation that violates the aforementioned current law. Section 4 also requires a court to award to a claimant that prevails in a claim arising from alleged defects in a residential property construction, in addition to actual damages, prejudgment interest on the claim at a rate of 6% from the date the work is finished to the date it is sold to an occupant and 8% thereafter. Current law requires that a lawsuit against an architect, a contractor, a builder or builder vendor, an engineer, or an inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of an improvement to real property must be brought within 6 years after the claim arises. Section 2 increases the amount of time in which a lawsuit may be brought from 6 to 10 years. Current law also provides that a claim of relief arises when a defect's physical manifestation was discovered or should have been discovered. Section 2 also changes the time when a claim of relief arises to include both the discovery of the physical manifestation and the cause of the defect. Section 3 voids a provision in a real estate contract that prohibits group lawsuits against a construction professional. Section 5 of the bill prohibits governing documents of a common interest community from setting different or additional requirements than those in current law for a construction defect action.(Note: This summary applies to this bill as introduced.)

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